Unemployment and Consumption: Are Job Losses Less Painful Near the Mediterranean?

• Samuel Bentolila ^[1] ; Andrea Ichino ^[2]
  1. [1] Centro de Estudios Monetarios y Financieros

     Centro de Estudios Monetarios y Financieros

     Madrid, España

     
  2. [2] European University Institute

     European University Institute

     Firenze, Italia

     
• Localización: Documentos de Trabajo ( CEMFI ), Nº. 10 (Working Paper No. 0010, September 2000), 2000
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • In this paper we analyze the relationship between unemployment and consumption. We study this relationship with panel data on households in five countries: Spain, Italy, Germany, Britain, and the US. Our empirical results indicate that an increase in the duration of unemployment spells of male household heads is associated with smaller consuption losses in Spanish and Italian households. We discuss this finding in the light of different market and insitutional frameworks. The evidence supports the hypothesis that extended family networks, which appear to be stronger near the Mediterranean, provide a fundamental source of insurance against unemployment in southern Europe.